FIN 4450 Quiz 2 QUESTION 1 Please calculate part (a) NPV and part (b) IRR

FIN 4450 Quiz 2

QUESTION 1

1. 1. Please calculate part (a) NPV and part (b) IRR. 

   Discount rate	8%
   year	cash flow
   0	-200
   1	300
   2	200
   3	200
   4	100

   Part (a) NPV

1.12 points   

QUESTION 2

1. Part b, IRR?

1.12 points   

QUESTION 3

1. A manager just collected data of customers numbers and sales for his store, please using regression analysis to answer

   Part(a) what is the slope?

    

    

   year	sales	customers
   1	100	20
   2	200	25
   3	300	30
   4	800	45
   5	50	10
   6	1000	70
   7	500	35
   8	600	40
   9	150	15
   10	700	60

1.12 points   

QUESTION 4

1. Part(b) Is the above regression result significant?

    Yes

    No

1.12 points   

QUESTION 5

1. 1. Calculate  part a) PV at time 0 for all cash flows from year 0 to 6, and  part b) FV at the end of year 6 for the cash flow from year 0 to 6 with 8% discount rate. Please answer with absolute number.

   Part (a) PV at time 0

    

    

    

   year	cash flow
   0	-300
   1	200
   2	200
   3	200
   4	200
   5	200
   6	200

1.12 points   

QUESTION 6

1. Part(b) Fv at the end of year 6

1.12 points   

QUESTION 7

1. If you borrowed $10,000 from a bank today at 7% rate, you plan to pay it back within 5 years.

   Part a) How much is your annual payment?

    

1.12 points   

QUESTION 8

1. for the following table withe 3 different state and corresponding probability, please calculate expected value for X

   State	X var	Probability
   state 1	1.2	0.4
   state 2	0.8	0.4
   state 3	-1.4	0.2

   part a: what is the expected value for X

1.12 points   

QUESTION 9

1. 7b, for the above table,  what is the variance of variable X? (input with 4 decimals)